How to Create a Waterfall Chart in Microsoft Excel
The easiest way to visually review information that shows gains or losses over time is to use a waterfall chart. You can create a waterfall chart in Microsoft Excel using thebuilt-in chart tools, but you can also create your own using a custom stacked bar chart.
To create a waterfall chart in Excel, follow the steps below.
What Is a Waterfall Chart?
A waterfall chart is a chart that shows the progression of a value over time or through sequential stages. Put more simply, a waterfall chart shows how things add up or subtract over time, allowing you to see the gains or losses you’re making.
Each bar in the chart represents a separate element that positively or negatively influences the final total. By showing this data, it’s easier to track how individual components contribute to an overall total.
The chart begins with an initial value, which is then adjusted by a series of intermediate values that either increase or decrease, leading to a final result. You’ll find a waterfall chart useful for analyzing financial data, such as monthly cash flows or inventory levels.
A waterfall chart will include the initial and final values, represented by whole bars that bookend the intermediate values. They also include intermediate steps,with colored bars that reflect incremental changes, where gains are shown in one color (typically green) and losses in another (typically red).
There are also connecting lines,which sometimes appear between bars to help visually link the sequential changes. Its distinctive look, resembling a cascade, comes from the floating bars that seem to fall or rise from the stability of the baseline, hence the name—a waterfall.
How to Create a Waterfall Chart in Microsoft Excel
You can use a waterfall chart inMicrosoft Excelto analyze sales over time, check your net profit (or loss), compare product earnings, or look at budget changes.
To craft a waterfall chart that reveals the cumulative impact of these values on an initial starting point, follow these steps. These steps will work for Excel users on Windows or Mac.
How to Edit a Waterfall Chart in Microsoft Excel
Aftercreating your chart, it’s time to fine-tune it for clarity. Excel automatically assigns the starting and ending totals as whole bars, while the intermediate values appear as floating columns that rise or fall from the preceding subtotal.
By customizing your chart colors and adding data labels, you’ll make your data easier to understand. Remember to periodically save your work to avoid losing any changes.
To change the formatting of your waterfall chart, follow these steps.
How to Build a Custom Waterfall Chart Using a Stacked Bar Chart
While it’s more effort, you can create a custom waterfall chart using astacked bar chartto reflect the incremental changes in data instead. To build a custom waterfall chart using a stacked bar chart, follow these steps.
Visualizing Your Data in Microsoft Excel
By creating a waterfall chart in Excel, you’re able to visualize the ups and downs in your data. It’s perfect for a sales report, but don’t be afraid to try other charts if it isn’t giving you the clarity you need—or if it isn’t suitable for the data you’re reviewing.
For instance, if you’re trying to track time in an important project, you can use aGantt chart in Excelto help you do it.
Ben Stockton is a freelance technology writer based in the United Kingdom. In a past life, Ben was a college lecturer in the UK, training teens and adults. Since leaving the classroom, Ben has taken his teaching experience and applied it to writing tech how-to guides and tutorials, specialising in Linux, Windows, and Android. He has a degree in History and a postgraduate qualification in Computing.Read Ben’s Full Bio
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